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5 Reasons Why Millennials are renting apartments in Boston

Not a lot of people are interested in buying their own house anymore, mainly because of the devastating market conditions, especially in the realm of real estate. Millennials find it difficult to procure a house that fits their aesthetic and budget needs. Most of the top properties within striking distance of the city have been dog-eared by the wealthy.

So what’s left to do? Rent.

Renting has become popular among young Bostonians for a number of extremely practical reasons. Here are some reasons why millennials are opting to rent apartments rather than buy them in Boston.

1.Price

Apartments in Boston are expensive, and most millennials find it difficult to make the down payment of 10 to 20 percent of the cost as the down payment, and then come up with a significant amount of money as EMI each month. When all the costs are factored in, the cost of homeownership goes far beyond the mortgage that you may take out. On the other hand, renting an apartment is way more cost-effective in the long run.

2.Flexibility

A house becomes a liability in the long run, and young people may be more interested in exploring their options and career opportunities before finally wishing to settle down. Renting offers young people with this flexibility. Young people and professionals can explore their possibilities in detail before finally settling down.

3.Getting a mortgage can be problematic

Of course, young people can buy apartments in Boston by applying for credit. But, the process of procuring the loan is long and convoluted, and there are not many educational hubs which can explain the whole process in detail. This is a major reason why millennials prefer renting over buying- it allows them to skip all the unnecessary paperwork.

4.High property taxes

Boston has relatively high property taxes, high enough to turn millennials away from the prospect of buying a home. Renting, obviously, does not come with such liabilities, which is why more and more young Bostonians are choosing to rent apartments rather than buy them.

5.Huge down payment and no access to technology

Even though the down payment for buying an apartment is just about 10 percent of the total cost, it can be a huge liability for a young person who is just starting out. According to statistics, young people need to have anywhere around $50,000 to $100,000 before they can even think about buying a property. Renting the same apartment becomes a much less troubling prospect when compared to these issues.

Also, the housing industry has not adapted itself to the technological world, so not everything is available at the click of a mouse. This can be a little frustrating for young millennials who are used to the advances in technology.

Conclusion

Renting in Boston is not a ball game either. But it is much less of a headache than claiming ownership of a house. The reasons listed above are only five of the many reasons why the youth of Boston are preferring renting to ownership in the 21st century.